Taking Stock: Nifty sees profit booking after crossing 25,100 for first time; IT, pharma stocks gain

Market Today

Indian indices ended higher on August 28 with Nifty crossing its previous record high (25,078.30) and surpassed 25,100 for the first time led by Information Technology and pharma stocks they saw profit booking by end of the session.

At close, the Sensex was up 73.80 points or 0.09 percent at 81,785.56, and the Nifty was up 34.50 points or 0.14 percent at 25,052.30.

Biggest Nifty gainers were LTIMindtree, Wipro, Divis Labs, IndusInd Bank and Bharti Airtel, while losers were Maruti Suzuki, Nestle India, Asian Paints, Adani Enterprises and Britannia Industries.

Among sectors, IT, Pharma, and Healthcare were up more than 1 percent each, and Telecom index was up 0.5 percent, while Media index shed 1.4 percent and FMCG and PSU Bank down 0.4 percent each.

Broader indices including BSE Midcap and Smallcap touched record high but ended on a flat note.

Outlook for August 29

Aditya Gaggar Director of Progressive Shares

Indian equities commenced the session on a flat note but under the influence of the IT and Pharma counters, the Index moved towards the north, registering a fresh high of 25,130, although profit booking in the last session dragged the Index lower to settle at 25,052.35 with gains of 34.60 points.

As earlier indicated, IT was the top performer with gains of 1.64% followed by Pharma while the Media segment corrected the most.

At record levels, Long-Legged DOJI candlestick pattern with a probable bearish divergence in the RSI suggests loosening of the positive momentum. The same was spotted on the lower timeframe (hourly chart) as well.

A break below 24,970 will drag the Index further lower towards 24,840; while on the flip side, a firm close with a bullish candle above 25,100 is a must to continue its northward journey.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty continues to exhibit confusion at higher levels, as the index closed flat with wicks on both the upper and lower sides, indicating extended indecisiveness. This is highlighted by two consecutive doji-like candles following the recent rally on the daily timeframe.

A decisive move above 25,100, or a close above this level, could confirm a further rally in the market. Otherwise, Nifty may slip lower, as the absence of sustained buying might trigger selling pressure. The immediate support is placed at 24,800.

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